Farming business not bet

November 13, 2014

Dairy farming is ‘no bet’:

Federated Farmers says it’s not the government betting on the farm, but instead farmers making sound market decisions. This comes after Green Party co-leader, Dr Russel Norman, said the government has ‘bet on the farm’ with dairying being a ‘one trick pony,’ which is producing a lower tax take and jeopardising a budget surplus.

“Dr Norman is ill-advisedly attacking New Zealand’s most successful export industry,” says Andrew Hoggard, Federated Farmers Dairy chairperson.

“Primary exports are an increasingly large share of our merchandise export returns and dairy an increasingly large share of farm production.

“The signals from the market are that growing middle classes, especially in South Asia, are developing a sustained taste for dairy products, and New Zealand is a respected source of those dairy products.

“Our dairy farmers are rationally taking these market signals on board and not being diverted by the inevitable short term fluctuations, or in Dr Norman’s terms, ‘a bet’

“The reasons for the present market slippage are clear.

“We didn’t cause Ebola in West Africa and our dairy farmers didn’t invade Eastern Ukraine either, but these two disparate events have cost us hundreds of millions of dollars. That same risk would exist if we exported mobile phones or software.

“Yes, the world produced seven billion litres more milk last season in an exceptional run the world-over. While that put a lid on dairy price growth, sanctions following events in the Eastern Ukraine released some three billion more litres and now you’ve got Ebola too.

“No question this season is a poor one. It ranks down there with 2005/6 but that also means the many seasons around them weren’t too shabby. Seasons that have helped to make this country the third most prosperous on earth according to Legatum.

“Unlike the past, our guys have been saving the gains while investing into productivity and environmental improvements. The ASB reckons, according to NZ Farmer, that agricultural bank deposits over the year to the end of September totalled $7.2 billion.

“Within the past few weeks RadioLive’s Duncan Garner has been on-farm and said this after visiting one; “So a bit of a message to the Greens, this guy wanted to pass on a message to the Green Party that they spend hundreds of thousands of dollars on what they do with their waste, and I thought it was quite brilliant, actually”.

Andrew Hoggard however doesn’t take too much issue with Russel Norman that the dairy industry might to likened to a pony.

“If he insists that it is a pony he should acknowledge that it is a very strong pony, it’s a stayer and it can perform economic miracles for our nation that Dr Norman would do well to get acquainted with,” Mr Hoggard concluded.

Season Average Dairy Company total payout ($/kg milksolids) Dairy Company payout (inflation adjusted)a
2003/04 $ 4.25 $ 5.34
2004/05 $ 4.58 $ 5.60
2005/06 $ 4.10 $ 4.83
2006/07 $ 4.46 $ 5.14
2007/08 $ 7.67 $ 8.51
2008/09 $ 5.14 $ 5.59
2009/10b $ 6.37 $ 6.82
2010/11b $ 7.89 $ 8.02
2011/12b $ 6.40 $ 6.44
2012/13b $ 6.18 $ 6.18

Fonterra’s milk price payout for the immediate past (2013/14) season is $8.40 kg/MS.
Source: DairyNZ Dairy Statistics for 2012/13
a Weighted to give real dollar values using the Consumers Price Index for the end of the June quarter. Sourced from Statistics New Zealand; Excludes dairy company retentions and deduction for DairyNZ Levy.
b Average dairy co-operative payout (Fonterra, Tatua, Westland)

 The Green Party doesn’t like dairying and it doesn’t like the government.

But neither farmers nor the government are betting on the industry.

Since National came to power in 2008 it’s introduced several measures to help business, foster trade and lower the burden of government.

Meanwhile farmers have got on with farming, accepting the reality that markets, the weather and various other factors beyond their control will affect the payout.

Last season we got a record high payout, this season will be much more modest but the medium to longer term outlook is still bright for dairying and the export income it earns for New Zealand.

 


In praise of erudition

September 27, 2014

National’s candidate for Rongatai, Hon Chris Finlayson writes on his campaign for the elucidation of readers of the Spectator:

Every three years in New Zealand, incumbent politicians must hit the campaign trail. Since 2008, I have chased votes in the Rongotai electorate. My Labour opponent, Annette King, has held the seat since 1996. She is a fine parliamentarian, a thoroughly nice person, and also a distant cousin on my mother’s side. ‘Chris says if he wins Rongotai, he’ll ask for a recount,’ she delights in telling voters. This is supposed to be a joke but, under New Zealand’s mixed member proportional voting system, winning individual seats is not the be all and end all. The number of seats a party has in Parliament is determined by a party vote, and local representatives by a separate electorate vote. As a list MP standing in a traditional left seat my job is to maximise the party vote for National.

The Rongotai electorate takes in Wellington’s rugged southern coast, the Miramar Peninsula and the working class suburbs of Newtown and Berhampore, which are fast gentrifying and turning from red to green. Its furthest boundary is the Chatham Islands, an archipelago around 700km from the mainland. It is a place of isolated natural beauty, rich cultural history, abundant fisheries and distinctively salty mutton. On my most recent trip, the twin-propeller plane was struck by lightning and my stay had to be extended by two days. There is no cellular reception in the Chathams, adding to its attractiveness.

The Newtown debate is usually the rowdiest of the campaign. In 2011, I was shoved by an Anglican vicar as I made my way out. This year, there are ten candidates lined up across the stage facing the audience squeezed into a wooden church hall. The crowd has a very particular strand of rule-bound, suburban radicalism: every mention of ‘revolution’ is cheered, but the audience will not allow proceedings to begin while party signs are blocking the fire exits. Along with Annette, the candidates include Russel Norman, a Tasmanian who relocated to New Zealand to work for the Green Party and now, holding the office of Male Co-leader, campaigns against foreign ownership. He finds himself fighting candidates from the populist Conservative and New Zealand First parties for the xenophobe vote. The Newtown audience thinks I am insufferably right wing but also thinks the same about the Greens and Labour. Dr Norman is accused of dismissing victims of sexual assault. Annette King gets a frosty reception for her party’s track record on Maori issues. I am roundly booed when I say the audience is ‘redistributionist’. More popular are a young man dressed as a shark and representing the Climate Party (his contribution to the debate is ‘learn to swim’) and also the candidate for the Patriotic Revolutionary Front. The PRF wants a benevolent dictatorship and has a leaflet showing a composite picture of Stalin and Einstein as its ideal leader. . .

It’s not just what he says but the way that he says it.

Oh to have the ability to write so eruditely, and also to have been a better Latin scholar.

Can anyone translate his quote (in the paragraph which follows the extract I’ve used) from Horace: parturiunt montes, nascetur ridiculus mus ?

I tried Google and got the mountains are in labour, security issues. Even without dim memories of third form Latin I would doubt that is what it means.


Feds wary of Greens

September 10, 2014

I’d add Finance to that:


Greens to tax good farmers to clean up after bad

September 8, 2014

The Green Party wants to impose a tax on irrigation water and use it to pay for cleaning waterways:

“The Green Party will also put a charge on the use of water for irrigation in order to drive more efficient use of our precious freshwater resources,” said Dr Norman.

“The OECD, New Zealand Treasury and the Ministry for the Environment have all recommended water charging, yet National is sitting on its hands.

“According to Lincoln University’s Public Perceptions of New Zealand’s Environment 2010 study, New Zealanders, including farmers, are strongly supportive of commercial users being charged for the water they use.

“That’s because freshwaters is a common good, and the use of it for private profit should result in a direct benefit to both the environment and wider community.

Why only farmers then, why not all commercial users which would include power companies, food processors, restaurants and hair dressers?

“We will ring fence the money generated by the irrigation charge for water pollution clean-up initiatives.

Dr Norman said that his policies reward good farmers that are doing the right things, whereas National’s policies incentivise poor practice. . .

He’s wrong there.

The Green Party would tax all irrigators and use the money to clean up after the minority who don’t protect and enhance waterways.

There is no incentive for poor practice now and very expensive penalties for anyone who breaches conditions set by regional councils.

This is just another tax by another left-wing party that wants to fund its promises to spend more with other people’s money.

 


Peters scared of Craig

August 27, 2014

The Queenstown ASB debate between the finance spokespeople for five parties attracted a sell-out crowd last night.

debate

The photo shows, chair Duncan Garner, Finance Minister Bill English for National, Conservative leader Colin Craig, Labour’s David Parker, Act’s Jamie Whyte and Green Russel Norman.

Duncan Garner said that the Maori Party declined the invitation, Mana didn’t reply and New Zealand First leader Winston Peters refused to come if Craig was there.

The chair gave each speaker three minutes to give a pitch then gave them a few questions before taking questions from the floor.

Labour’s trying to campaign on being positive but its finance spokesman started by being negative about the economy and the outlook.

Jamie Whyte started by quoting Adam Smith:

Little else is requisite to carry a state to the highest degree of opulence from the lowest barbarism but peace, easy taxes, and a tolerable administration of justice: all the rest being brought about by the natural course of things.

He also asked who’s going to make better decisions – someone putting their own money at risk in search of profit of someone using other people’s money in search of votes?

Duncan Garner asked him to name one Green policy he agreed with and he said he couldn’t think of one.

The question Duncan Garner put to Russel Norman at the end of his three minutes was whether he could say something good about the Finance Minister and he said he’d been very responsible.

Colin Craig rattled through his policy which includes tax cuts at the lower end.

The chair asked him to say whether he’d go with National or Labour if he had the choice after the election. He said National because the party would have the most votes.

Clutha Southland MP Bill English got the biggest welcome from his home crowd.

He started by giving people the credit for their resilience, responsible and work and how important that was because the economy doesn’t just exist in an office in Wellington, it’s what people do.

That, in partnership with National-led government’s careful management of public finances, had put New Zealand back on the right track.

He said we now have a platform built on our resilience the positive encouragement from government and the most positive Prime Minister New Zealand has had that will allow us to have sustainable growth.

“You have set that direction and we can keep it,” he said.

There’s a video of the debate here.


Environment not Green priority

August 20, 2014

The Green Party has confirmed the environment isn’t their priority, it’s their socialist economic and social agenda which matters most.

Green co-leaders Russel Norman and Metiria Turei want to be in a full coalition with Labour and have senior Cabinet positions that reflect their party’s priorities, social justice and the economy. . .

They’ve always denied the accusation of being a watermelon – green on the outside, red inside. But confirming the environment isn’t a priority proves they are.

The thought of Green MPs in senior cabinet positions, and sharing the position of Deputy Prime Minister will not be attractive to many Labour voters and will be even less so to Winston Peters.

Throw Internet Mana and their puppet master Kim Dotcom into the mix and a potential Labour-Green government becomes even more expensive and unstable.


Greens can’t read Budget

August 20, 2014

Oh dear, the Green Party has been trying to claim it’s economically responsible but it can’t even read the Budget:

Russel Norman and the Greens have again confirmed they cannot read Budgets, repeating incorrect claims that the National-led Government is planning multi-billion dollar cuts to health and education spending over the next three years.

“If I was Russel Norman, I’d ask BERL to cancel the invoice for their latest report on behalf of the Greens,” National Party Finance Spokesman Bill English says.

“The forecast health and education numbers they quote for future years exclude allocations yet to be made from future annual operating allowances for discretionary spending and they also exclude capital investment allocations.

“These decisions are made by ministers just before each Budget – as they have done under successive governments.

“Typically health and education receive most of this extra discretionary operating spending.”

In Budget 2013, the Vote Health allocation for 2014/15 was in the accounts at $14.1 billion. After Budget 2014 decisions, the total health budget, including discretionary spending and capital investment, was actually $15.6 billion.

“This process happens every year, but Dr Norman obviously doesn’t know that – yet he wants to be finance minister one day.

“Although the Greens are again wrong with their numbers, they also fail to understand that it is the results of spending that matter for New Zealanders – such as lower crime and higher educational achievement.”

The Green Party like others on the left put more emphasis on the amount of spending than the effect.

They measure success by the quantity spent rather than the quality of the spend.

It’s not how much that’s spent it’s how well it’s spent that is helping National make a positive difference and show it’s working for New Zealand.


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